Market Summary
November 2015
After an ugly August and September, markets had a sharp reversal, and sustained, ironically, by a much worse than expected jobs report in mid-October.

The Dow and S&P 500 had made up most of their negative year by the end of the month. With this upward move also came a reversal in the trend lines we follow closely. After months of a downward trending market, which caused us to lighten up considerably in equities, we once again have an upward trending market. While there is some cause for concern on the swiftness of this reversal, discipline dictates we begin getting heavier in equities once again, which we have.

As for why a bad jobs report would be positive to stock markets? This market is and has been a Fed driven market, either by outright stimulus money or by stimulus via a low interest rate environment. A bad jobs report lends to the idea that the Fed will not raise interest rates in December, thus keeping the stimulus in play, consequently encouraging institutions, managers, pensions and individual investors to keep buying stocks.
Our Management Philosophy

Limit downside risk and provide clients a reasonable rate of return over a market cycle.

 

With over five decades of combined money management experience in South Texas, you can be sure that Walter and Anthony Reyna have seen it all. This father-son pair built and developed Walter J. Reyna Inc. on the importance of hard work and strategic planning and continue to implement these core values in their business today.

 

The Reynas believe that wealth accumulation and protection are the result of exceptional planning, not luck. Visit our website to learn more.

 

Walter J. Reyna, Inc.
5315 North McColl Road
McAllen, Texas 78504 
956.682.4196 

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Market Summary Continued
For now, all we can do is wait to see what happens. While we have added equities, we do expect some sort of pullback in November, at least the first part of November, due to the market run up in October, creating an overbought condition. Once that settles, all eyes will be on the Fed meeting in December.

It has been our contention all year that we would not see rates go up in 2015, and we will stick to that prediction. However, our prediction is not set in stone, and the Fed could surprise us. Remember, just because rates could be raised, it will likely be a very small bump up. While there may be an initial shock to equity markets, we don't expect it to be anything more than an initial short term shock.

Visit our website to learn more.

 

For more information about your portfolio performance, please refer to your personalized statements or contact us. Regulatory restrictions prevent us from reporting personalized performance data in this newsletter. See below for important disclosures. 

Portfolio Insights

(1)The S&P 500 Index is representative of domestic markets and includes the average performance of 500 widely held common stocks.  Individuals cannot invest directly in any index and unlike investments; the S&P 500 Index does not incur management fees, charges, or expenses. (2) All Statistical information, investment category determinations, and economic data retrieved from www.bloomberg.com. Past performance is no guarantee of future results and all investment strategies involve the risk of financial loss. 

This publication is proprietary and limited to the sole use of Walter J. Reyna, Inc. clients.  Client portfolios are designed for the moderate investor but are actively managed on a monthly basis and may not follow traditional risk adjusted asset allocation models. Walter J. Reyna, Inc. maintains full discretion over said accounts and manages as deemed necessary. Clients with questions about the fees associated with their discretionary advisory account should refer to their advisory agreement. The information contained herein is for illustration purposes only. It is not necessarily complete, does not include client directed investments, and its accuracy is not guaranteed by Walter J. Reyna, Inc.  All clients should reference their periodic statements for accuracy. All clients needing additional information about holdings in the portfolio, including the objectives, risks, asset class and costs associated should refer to their respective prospectus. If you have received this communication in error, please notify us immediately by e-mail or telephone.  Neither the information, nor any opinion expressed constitutes a solicitation nor investment advice, for the purchase of any future security referred to in the Advisory Newsletter.  Investments offered through Registered Representatives of Lincoln Financial  Securities Corporation, member SIPC.  Lincoln Financial Securities Corporation and Walter J. Reyna, Inc. are not
affiliated.  
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